Saxonville Sausage is a private family owned company in Saxonville, Ohio, with 2005 revenues of approximately $1.5 billion. Their main focus is on pork sausage products that are always fresh. Saxonville’s main product is their bratwurst line, which makes up seventy percent of their revenues, breakfast sausage that consists of twenty percent of their revenues and their small Italian sausage line, named Vivio that only makes up five percent.
Unfortunately, Saxonville's sales in bratwursts have been flat and their breakfast sausage line has been steadily underperforming in the market resulting in a double-digit decline in revenue. However, the Italian ...view middle of the document...
” “Vivio,” ranked seventh. Research shows that there is brand vagueness under the Saxonville flag, because the name Saxonville appears “too German,” to produce a quality Italian sausage. The current packaging with “Vivio fresh Italian sausage,” and the Italian flag in one corner creates some confusion for customers. In order to demonstrate innovation and quality within Saxonville’s product, a new brand needs to be set up to help with the company’s positioning. However, such a move will fail to make use of the existing loyalist that have become accustomed to the Vivio name.
• Senior management’s lack of marketing orientation
• Senior management was skeptical of positioning and referred to it as “one of those business-school buzz words” (Moore).
• They didn’t have a well thought out plan for launching their Vivio product
• “Management is not willing to discount the product’s price” (Moore).
• Management is not willing to discount the product’s price for initial promotion
• Consumer Taste and Preferences
• Management needs to consider the change in consumer tastes and preferences. One of the top global trends is that, “Consumers are increasingly choosing naturally healthy foods such as fruit, vegetables, salads, nuts and yogurt. Fruit is now America’s second-favorite snack” (Haynes).
• Misallocation of Resources
• “Since 2004, brats and breakfast categories across all sausage producers have been flat nationwide” (Moore).
• “Breakfast sausage resulted in double digit decline” (Moore).
• Italian sausage was the only group showing annual growth but they haven’t dedicated enough resources to it.
• By branching out nationally, freshness levels may be compromised because of the time length of delivery to west coast supermarkets.
• Careful consideration must be taken in positioning the Italian sausage line to avoid cannibalization in Saxonville Sausage’s other brands.
• With the following years profit objectives in mind, the time line of the launch should be carefully thought out, and coincide with peak sausage season.
• Peak volume season: October- February
• “Each tactic has to be realized by the slated date for the brand’s national launch early in 2007” (Moore).
• Before the launch, we have to consider an advertising company to handle a multifaceted national campaign and the training of regional sales managers and retailers about how our product is differentiated from the competition.
The central issue facing Saxonville Sausage is the successful launch of a national Italian sausage brand. The development of a new brand name and positioning strategy will be key to reaching the target market. The implementation of an effective brand is the most important problem because the brand is the first thing a consumer can relate to. “When a brand taps into what really matters to customers, customers feel good about using that brand” (Moore). The resolution of...